Observed Signal · May 4, 2023 · Regulation · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Negative
FTC Bans Meta From Monetizing Minors' Data
The U.S. Federal Trade Commission plans to tighten a 2019 consent decree with Meta to bar monetization of data belonging to users under 18 across Facebook, Instagram, and WhatsApp. The proposed rules would also prevent Meta from launching new products or services without an independent privacy assessment. The FTC asserts Meta has repeatedly violated its privacy promises and points to gaps in Meta’s privacy program, including continued access by app developers to private information and Messenger Kids’ contact-approval promises not being upheld. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said Meta’s handling of young users put them at risk. Meta called the action a political stunt and said it would vigorously fight it, noting years of engagement with the FTC and a robust privacy program. The FTC has given Meta 30 days to respond; the case mirrors other child-data actions against TikTok and YouTube.
Regulatory action involving Meta; potential impact on minors' data monetization policies in AdTech.
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Key Takeaways & Evidence Grounding
- FTC plans to tighten the 2019 consent decree to ban Meta from monetizing data of users under 18 across Facebook, Instagram, and WhatsApp.
- FTC would require independent privacy assessments before Meta launches new products or services.
- FTC cites Meta's privacy program gaps and continued app developer access to private data; Messenger Kids contact-approval promises not fully upheld.
- Samuel Levine, Director of the FTC's Bureau of Consumer Protection, stated Meta's handling of young users exposed them to risk.
- Meta described the move as a 'political stunt' and vowed to vigorously fight, with Meta urged to respond within 30 days.
Connected Companies & Entities
3 Entities mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Meta's $18B settlement grants legal pass on kids' data
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